Wednesday, 27 August 2014
Last updated 9 hours ago
Sep 1 2010 | 12:27pm ET
There are a lot of China-focused hedge funds, but there are not any truly Chinese hedge funds. That is about the change as a pair of Chinese asset managers prepare to launch the country’s first genuine hedge funds.
Chinese regulators in July eased restrictions on asset managers’ trading of index futures, giving the green light to launch separately-managed account products aimed at high-net-worth investors. The first firm to walk through that new door will be E Fund Management, which plans to launch China’s first officially-registered hedge fund.
E Fund, China’s second-largest asset manager, says its product will be the first institutional hedge fund in China, targeted a China’s growing population of millionaires, which now number nearly a half-milllion. The firm has already applied to the China Securities Regulatory Commission with details about the fund, although the CSRC said it will essentially not regulate hedge funds.
In a statement, E Fund said its new hedge fund will “seek to hedge market risk through stock index futures and other tools.”
“Separately managed accounts at asset management companies now are in the position to operate in the way hedge funds in developed markets do with the same strategies at their disposal,” Liu Zhen, a former Brevan Howard Asset Management and D.E. Shaw Group portfolio manager who serves as E Fund’s managing director for index and quantitative investments, told Bloomberg News of the regulatory changes.
E Fund isn’t the only firm planning to enter the new Chinese hedge fund market. China Southern Fund Management is also working to launch one, Bloomberg reports.
According to Liu, E Fund’s hedge fund will charge “2-20 like” fees.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...